The Department of Education announced an unexpected pause on involuntary collections such as Administrative Wage Garnishment and Treasury offsets while it implements new repayment reforms under a recent student‑loan law. The pause aims to give defaulted borrowers time to access restructured income‑driven plans and rehabilitation pathways that take effect this summer. Advocacy groups praised the decision; taxpayer advocates criticized it. Separately, Pell Grant enrollment at American Talent Initiative colleges has surged over the past decade, with nearly 75,000 Pell students recorded and transfers accounting for a substantial share of growth. Higher Pell enrollment amid federal policy churn suggests that demand for affordable postsecondary access remains strong even as political debates over aid continue. Financial‑aid officers say the temporary collections pause will complicate budget forecasts for institutions that rely on cohort default metrics and borrower repayment behavior. Enrollment managers note the sustained Pell gains may help colleges hit access goals but will not eliminate funding pressures tied to changing federal rules.
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